Running discussion on SP, page-11040

I agree Setfire. I sold two houses in Sydney last year as I know those suburbs well and my god the prices were getting absolutely stupid. The facts are right now that the Royal Commission is "royally" rooting the housing market. 60% of all investor loans in this country are interest only. Staggering really. And the clincher...20% of all owner occupier loans are interest only. It's scary. All of these people over the next 26 months are going to see a 40% increase in their monthly debt payment (yep 40%) as the move from "I" to "P&I". Oh, how novel, you've got to pay the debt back...….
I'm countering this in my portfolio by (A) Owning 0% in banks since early last year - I used to have a very large bank position (B) Trimming stocks I think could be hurt when the tide really turns and people here need to spend less and save and (C) Investing significantly (very significantly) in the US and (d) having my largest positions in Australia being REITs coupled with commodities. The REITs I know extremely extremely well and provide some safety whilst the commodities really have no exposure to Australia at all - the customers are all global. That's my speech over....stuff the queen.